Question
moss inc. follows GAAP for financial reporting purposes and appripriately uses the installment method of accounting for income tax purposes. it reported $250000 of pre-tax
moss inc. follows GAAP for financial reporting purposes and appripriately uses the installment method of accounting for income tax purposes. it reported $250000 of pre-tax income under GAAP, but it will report the corresponding taxable income in the following years. The enacted tax rate is 35%. 2016 taxable income is $25,000 2017 taxable income is $50,000 2018 taxable income is $75,000 2019 taxable income is $100,000 the installment income is the firm's only temporary difference. Required: what amount shouldl be included as the deferred tax liability in Moss's December 31, 2016 balance sheet?
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